The strong bearish trend offers us a chance to sell the pair.
Today we would take a look at the EUR/USD currency pair. The dollar continues to steadily push against the euro, taking the single currency further down each day.
With no expected changes in the dovish policy of the European Central Bank and not that many events to look forward to within the eurozone, it is expected that the euro will continue to be susceptible to the movements of other currencies. Investors are hoping for an economic stabilization and better fundamentals during the last quarter of 2018, but the budgetary struggles of Italy, as well as the ongoing Brexit negotiations still hold the potential to shake the euro.
On the other hand, the American dollar is riding on strong fundamentals and continues to appreciate against most currencies. It received a significant boost recently when the Federal Reserve implemented their third interest rate increase for this year, and another one is expected in December, which will further propel the dollar upwards. Moreover, the USD keeps winning positions every time there is talk of trade wars on account of it being a good safety asset. That’s why our outlook for the USD is bullish.
In terms of the daily chart, today we have a pivot point for the pair located at 1.1524. The daily support levels lie at 1.1520 and 1.1516, with the pair currently trading below both of them. The daily resistances are located at 1.1528 and 1.1532. We expect the price to continue dropping. The indicators of technical analysis and the moving averages agree on a strong sell recommendation.
